Africa’s richest man, Aliko Dangote, weighs Kenya for $15 billion refinery

Africa’s richest man, Aliko Dangote, is weighing Kenya as the location for a 650,000-barrel-per-day oil refinery that would extend his energy investments beyond Nigeria, according to the Financial Times, which cited an interview with him on Sunday.

Dangote said he is leaning toward Mombasa, pointing to the port’s depth and capacity to handle large-scale crude and refined product shipments. “I’m leaning more towards Mombasa because Mombasa has a much larger, deeper port,” he said. The comments place Kenya at the center of a fresh round of discussions on how East Africa might reduce its reliance on imported fuel.

East Africa refinery plan explored; $15–17 billion investment projected

The move comes shortly after Kenyan President William Ruto said East African nations were exploring a joint refinery project at Tanzania’s Tanga port, partly based on lessons from Nigeria’s Dangote Refinery. Dangote drew a distinction between the two coastal options, citing demand and infrastructure. “Kenyans consume more. It’s a bigger economy,” he said. 

He added that the project would depend on government backing. “The ball is in the hands of President Ruto. Whatever President Ruto says is what I’ll do,” he said. Dangote estimated the refinery would require between $15 billion and $17 billion in investment.

East Africa currently imports nearly all of its refined petroleum products, largely from the Middle East. That dependence has left the region exposed to price fluctuations and supply disruptions during periods of geopolitical strain, including recent tensions involving the U.S. and Israel and their broader impact on energy markets. 

The Kenya discussion builds on Dangote’s broader push to replicate the model of his Lagos-based refinery, which he described last month at an infrastructure meeting in Nairobi as a blueprint for regional energy supply, provided governments support the framework.

Dangote Refinery targets $50 billion listing

His existing facility, the Dangote Petroleum Refinery and Petrochemicals, remains central to those plans. Built in the Ibeju-Lekki Free Zone in Lagos at a reported cost of $22 billion, the plant has a capacity of 650,000 barrels per day and began full operations in February 2026.

Dangote Industries Limited holds a 92.3 percent stake valued at $18.68 billion, while the Nigerian National Petroleum Company holds 7.25 percent. The refinery is also expected to underpin a wider capital markets plan. A proposed listing of the asset has been discussed at an implied valuation of about $50 billion, with potential listings across African exchanges. If completed, it would be one of the largest equity transactions in the region.

Dangote has also outlined plans to expand capacity to 1.4 million barrels per day over the next three years, backed by a broader $40 billion investment program supported by a mix of syndicated loans and multilateral financing. Demand for refined fuels across Africa has continued to support exports to markets including Ghana, Cameroon, Togo, and Tanzania.